CANADA FX DEBT-C$ rebounds on oil price, China relief
* Canadian dollar at C$1.2698 or 78.75 U.S. cents * Bond prices mostly lower across the maturity curve TORONTO, July 9 (Reuters) - The Canadian dollar rebounded against its U.S. counterpart on Thursday after recent sharp losses as crude oil prices recovered and sentiment in global markets brightened. Also helping to support the loonie was data that showed new home prices in Canada rose by a greater-than-expected 0.2 percent in May from April. Meanwhile, U.S. figures that showed a rise in U.S. jobless claims last week briefly trimmed U.S. dollar gains against a basket of currencies. The price of oil, a key Canadian export, climbed roughly 3 percent, bolstered by gasoline demand and positive economic data from Germany. Meanwhile, Chinese stocks, which had plunged more than 30 percent over the past month, stabilized after Beijing took measures to halt the dramatic selloff. Many strategists, however, continue to expect the Canadian dollar to weaken further, particularly due to growing expectations that the Bank of Canada may cut interest rates as early as next week, and view the loonie's temporary bounce as a U.S. dollar buying opportunity. * At 9:25 a.m. EDT (1325 GMT), the Canadian dollar was trading at C$1.2698 to the greenback, or 78.75 U.S. cents, stronger than the Bank of Canada's official close on Wednesday of C$1.2740, or 78.49 U.S. cents. * The loonie, which has fallen nearly 4 percent since mid-June, traded between C$1.2665 and C$1.2745 so far in the session. * Canadian employment data for June is due at 8:30 a.m. EDT on Friday and will be the final piece of closely watched economic data before the Bank of Canada's rate decision next Wednesday. * U.S. crude prices were up 2.83 percent to $53.11, while Brent crude added 2.93 percent to $58.72. * The Canadian dollar, which was outperforming many of its key currency counterparts, is expected to trade between C$1.2640 and C$1.2750 against the greenback during the North American session on Thursday, according to RBC Capital Markets. * Canadian government bond prices were generally lower across the maturity curve, with the two-year price down 6.5 Canadian cents to yield 0.461 percent and the benchmark 10-year falling 60 Canadian cents to yield 1.581 percent. * The Canada-U.S. two-year bond spread was -12.4 basis points, while the 10-year spread was -69.5 basis points. (Reporting by Solarina Ho; Editing by Peter Galloway)
© Thomson Reuters 2016 All rights reserved.